Tesla (TSLA) Reports Mixed Results, But Sees Strong Model X Demand
Tesla Motors (TSLA) reported earnings last night that were mixed. Â Quite frankly I couldn’t care about earnings with Tesla right now and I think most analysts would agree. Â This is still a development stage company that has yet to test the “more mainstream” electric car market. Â For now this is a company trading on potential and many have high hopes for both the Model S electric sedan expected to hit the streets in July as well as the Model X, which was unveiled last week and is expected to go on sale next year. Â According to the company, demand is already strong for the Model X with 500 reservations in the first day. Â Assuming an average price in the $75K range for the Model X, that equates to about one quarter’s worth of current revenues (close to $40 million) using current trends. Â Not shabby at all.
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Let’s take a look at the quarter. Â The company reported a bit wider loss than analysts expected at .69/share (vs the estimate for .63) on revenues that were a bit above what analysts were expecting ($39 million vs $37 million).
I’ll just highlight some key comments made by Tesla here…
– officially announced development program with Daimler for production of electric Mercedes-Benz using Tesla powertrain. Â You might recall that Tesla announced a letter of intent for the deal during its last earnings report
– as mentioned above 500 reservations in first day for Model X
– fully assembling beta Model S vehicles completing 30 of about 50 they  plan to produce.  On track for July launch.  Release candidates expected to be produced soon.
– added over 1500 new Model S reservations during the quarter, bringing total to 8000
– added three new design stores in Bellevue, WA, Chicago, IL and Newport Beach, CA,
and a Tesla Gallery in Houston, TX. Â Expects to open 8-10 new stores and 10 -15 service centers this year.
– Model X production to begin late next year and ramping up in early 2012
– Daimler recently issued Tesla an initial purchase order to develop a full powertrain for a new, all-electric Mercedes-Benz. Â Will start recognizing revenue from this deal in Q2.
– The Toyota RAV4 EV program continues on schedule with plans to ship complete powertrain systems under the production contract starting in Q2
– Tesla is providing revenue guidance of between $550 – $600 million with most of that coming in the 2nd half of the year following the Model S release. Â That’s ahead of the analyst estimate for $520 million in revenue. Â For 2013, analysts expect Tesla to finally start socking away some big profits with revenues of $1.6 billion.
Technically, I stand by my prediction from my last article that Tesla will soon retest the highs around $35 – $36 and likely break through before the year is out in anticipation of the Model S and Model X releases.
Disclaimer: I currently have no position in Tesla.
Tags: earnings, tesla motors, tsla
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